Satellite images show extent of damage to major Saudi pipeline, amid global oil supply fears
Saudis yet to provide details about damage from drone attack to key east-west pipeline to Red Sea that could affect 4% of global oil supply Saudi Arabia will run out of oil stocks for export if it doesn’t restart a drone-damaged major pipeline to the Red Sea within days, leading to the loss of up to 4% of global supply, Saudi oil buyers and traders said. Satellite photos released on Sunday night…
Satellite images have revealed the significant damage inflicted on a major Saudi pipeline by a drone attack, raising concerns about the impact on global oil supply. The attack has left a pumping station on the 1,200km pipeline badly charred, threatening to disrupt 4% of the world's oil output. If the pipeline is not restored within days, Saudi Arabia could run out of export stocks, leading to a 4% drop in global oil supply.
This comes as Yemen's Iran-aligned Houthi forces have expanded their control and captured the strategic island of Perim, intensifying the conflict in the region. Brent crude prices surged over 3.4% to $108 per barrel, the highest level since May, exacerbating global fuel price inflation. Saudi Arabia has yet to disclose the full extent of the damage or the timeline for pipeline restoration, which could take up to six weeks according to some estimates.
Without the pipeline's operation, Yanbu port will have sufficient stocks for only five to seven days of exports, presenting a serious risk to global oil supply.
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